Moving Tips

    The 'Movers Clause' Explained: How to Switch Without Paying Termination Fees

    Moving to a new Texas address? You might be able to exit your contract without paying early termination fees.

    5 min read
    The 'Movers Clause' Explained: How to Switch Without Paying Termination Fees

    Introduction

    Dreading that early termination fee when you move? Here's good news: Texas law includes a provision commonly called the **"Movers Clause"** that can save you $150-300+ in fees.

    If you're relocating within or out of Texas, understanding this rule could save you serious money. Let's break down exactly how it works and how to take advantage of it.

    What Is the Movers Clause?

    The Movers Clause is a provision under Public Utility Commission (PUC) of Texas rules that allows residential customers to exit their electricity contract **without paying an early termination fee (ETF)** when they move to a new address.

    Key Points:

  1. Applies to **residential customers only** (not commercial)
  2. Covers moves to **new service addresses** in Texas or out of state
  3. Requires proper **documentation and notification**
  4. Provider **cannot charge ETF** if you follow the rules
  5. Who Qualifies?

    You may qualify for the Movers Clause if:

  6. You're a residential customer (not a business)
  7. You're moving to a new address (not just changing providers at the same location)
  8. You provide proper documentation (proof of move)
  9. You give your provider appropriate notice
  10. Examples of Qualifying Moves:

  11. Renting an apartment and moving to a house
  12. Moving from Dallas to Houston
  13. Moving from Texas to another state
  14. Relocating for a job
  15. Downsizing to a smaller home
  16. Non-Qualifying Scenarios:

  17. Switching providers at the same address (not a move)
  18. Commercial/business accounts
  19. Temporary moves (you plan to return)
  20. Failure to provide documentation
  21. How to Use the Movers Clause

    Step 1: Notify Your Provider

    Contact your electricity provider **as soon as you know your move date**. Let them know:

  22. You're moving to a new address
  23. Your last day of service at your current address
  24. That you're invoking the Movers Clause to waive the ETF
  25. Step 2: Provide Documentation

    Your provider will likely require proof of your move. Acceptable documentation typically includes:

  26. Signed lease for new residence
  27. Closing documents for new home purchase
  28. Utility bill at new address
  29. Moving company contract
  30. Letter from new employer (for job relocations)
  31. Updated driver's license with new address
  32. Step 3: Get Written Confirmation

    Request **written confirmation** that:

  33. Your ETF is waived under the Movers Clause
  34. Your final bill reflects the waiver
  35. Your service end date is recorded correctly
  36. Keep all documentation for your records in case of disputes.

    Important Details

    Timing Matters

    While there's no strict timeline in the PUC rules, best practices suggest:

  37. Notify your provider **14-30 days** before your move
  38. Provide documentation **before or immediately after** the move
  39. Don't wait until after you receive your final bill
  40. Final Bill Considerations

    Your final bill should include:

  41. Charges through your last day of service
  42. Any outstanding balance
  43. **No ETF** (if you properly invoked the Movers Clause)
  44. Review your final bill carefully. If an ETF appears, contact your provider immediately with your documentation.

    Moving Within Texas

    If you're staying in Texas, you can:

  45. **Transfer your current plan** to your new address (if available in that area)
  46. **Cancel and sign up fresh** at the new address (use Movers Clause to avoid ETF)
  47. **Shop for a new provider** entirely
  48. **Pro Tip:** Even if your current provider offers to transfer service, take the opportunity to shop around. Rates and options may be different in your new service area.

    Moving Out of Texas

    If you're leaving the state:

  49. The Movers Clause still applies
  50. You'll need a new electricity provider in your new state
  51. Document your move with proof of new residence
  52. What If Your Provider Refuses?

    If your provider denies the ETF waiver despite proper documentation:

  53. **Escalate within the company** - Ask for a supervisor
  54. **Reference PUC rules** - Cite the Movers Clause provision
  55. **File a complaint** - Contact the PUC of Texas at (888) 782-8477 or puc.texas.gov
  56. **Document everything** - Keep records of all communications
  57. The PUC takes consumer protection seriously and will investigate legitimate complaints.

    Frequently Asked Questions

    Can I use the Movers Clause multiple times?

    Yes, each time you move to a new address, you can invoke the Movers Clause for your current contract.

    Does this apply to business accounts?

    No, the Movers Clause applies only to residential customers. Commercial accounts have different rules—check your contract or contact us about commercial options.

    What if I'm moving temporarily?

    If you plan to return to your original address, the Movers Clause may not apply. Discuss your situation with your provider.

    Can I transfer my plan to someone else?

    Electricity contracts are generally not transferable. The new resident must sign up for their own service.

    Moving Soon?

    Whether you're staying in Texas or heading elsewhere, make sure you understand your options:

  58. [Compare plans](/ambit-energy-plans) for your new address before you move
  59. Use the Movers Clause to exit your current contract fee-free
  60. Consider locking in a good rate at your new location
  61. Need help navigating the move? Contact us for assistance finding the right plan for your new Texas home.

    Ready to Find a Better Plan?

    Compare competitive electricity rates for your Texas home or business.

    Electric Bill Estimator

    Enter your current electric rate or your total bill and electricity usage to see how much you could potentially save before signing up or making the switch.

    ¢/kWh
    Disclaimer: Savings estimates are for illustration purposes only and are not guaranteed. Actual rates vary based on usage, location, and plan terms. Rates shown are at 2000 kWh usage level. E-Plan discount requires enrollment in electronic billing. Texas Energy Saver is an Independent Ambit Energy Consultant. Ambit Texas, LLC REP #10117.